The Latest Bank Prank; Gold Bank Holding Scheme; The Euro-Zombie Zone; Stocks
Moodys downgraded the big banks late yesterday and everyone yawned. The list includes JP Morgan, Citi, HSBC, Morgan Stanley and Goldman Sachs. On the one had there is the mediocrity of it all that is now embraced – that household U.S. banking names like Bank of America would have a Baa2 assigned to it. That is pathetic, but on the other hand – everyone already knew these banks are in shabby shape but that it is business as usual these so called financial “institutions” (at least where collecting fees is concerned). They are institutions alright, institutions for the financially insane.
Do I care what these ratings agencies blabber – the guys who played a key role in getting the financial crisis of 08/09 rolling with their AAA ratings on putrid tranches of mortgage debt? The characters who have never been prosecuted for such fraud? Of course not.
As much as I hate to say it, there are assorted near term buying scalp opportunities in these banks though I am talking short term, not an investment for life.
Gold Notes and News
New FDIC Regulations May Create Massive Increase in Gold Demand http://www.ibtimes.com/articles/354483/20120620/new-fdic-regulations-create-massive-increase-gold.htm
Jim again: This will be a good thing IF and only IF this does not involve leased gold. Think about that.
There is high rumor risk today. Another day, another important meeting where they are supposed to huddle again to come up with the elusive solutions. HaHa. Euro’s big four seek way out of crisis in Rome http://reut.rs/LKzTsl via @reuters. Next week, an all out EU Summit, again. What do you suppose will be accomplished? Nothing, but rumors are likely to fly.
EUROPE CONTAGION HITS JAPAN http://stks.co/d0qz
The 11:16 short tweet was well timed on Thursday. If only every tweet could be that good. Now that doom has not arrived to the banks by way of the Moodys jokers, futures have been a touch higher. Look for a modest bounce at the open, whether gains hold to the close is still to be seen. I wouldn’t be surprised to see a further down Dow move that takes it another 150 to 200 lower. So I am not talking long duration short. Profits from yesterday’s slide, especially if you used options, are worth taking.
REMINDER: INTRAY TWEETS COME ACROSS VIA MY TWITTER ACCOUNT AT @JKINGS1
The stock market is in a no man’s land – a few weeks away from earnings season. The action promises to be choppy until the numbers from corporate America begin to flow. Until the Fed becomes more outwardly aggressive, this is looking to be a repeat of the summer of 2010 pattern which was not a bullish pattern.
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Author Jim Kingsland
Market commentator with focus on Gold and Silver after long broadcast career at FNN, Bloomberg, and Fox. #RandomHouse published author on PMs. Jim has also been involved in projects for CAC and Coinplex.
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